Energy Resource Technology GOM, Inc., a wholly owned subsidiary of Helix Energy Solutions, has agreed to sell a 30% working interest in its Danny Noonan discoveries (Garden Banks Blocks 463, 506 and 507) and other Outer Continental Shelf oil and gas properties (East Cameron Blocks 371 and 381), in two separate transactions to a private independent oil and gas company for total cash consideration of approximately $165 million (which includes their share of past capital expenditures on these fields), and additional cash payments of up to $20 million based upon certain field production milestones. The new partner will also pay their 30% share of all future capital expenditures related to the exploration and development of these fields. Of the 30% working interest agreed to be sold, 20% closed, and was funded, on March 31, 2008. The parties anticipate that the remaining 10% will close and fund at the end of April.
Owen Kratz, President and Chief Executive Officer of Helix, stated, "As we have stated, our intention during 2008 is to unlock a portion of the value in our oil and gas portfolio through the monetization of certain reserves. These sales are the first of such efforts that we believe will allow us to demonstrate the value created through our unique two-stranded approach to oil and gas exploration and production and will allow us to recover previously invested capital, reduce future capital expenditure requirements related to these developments, and reduce the profit deferral in our services division associated with the development work."
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